Bidders, Applicants & Contractors
The enforcement of claims for damages after procurement errors
Procurement errors by the contracting authority can give rise to considerable claims for damages — including loss of profit. Many bidders give away these claims because they are not aware of them or do not pursue them.
What can be replaced
Also lost profit
Including the lost contribution to cover general business costs.
Important to know
Even without prior complaint
Claims for damages may exist even if no review procedure has been initiated.
What we do for you
Check claim
We check whether there has been a procurement error and whether this gives rise to a claim for damages.
Enforce your claim
We request the client to replace the goods in a standardized manner and in compliance with all deadlines.
Receivables management
We help you to systematically integrate public procurement liability claims into your receivables management.
What does compensation for damages have to do with procurement errors?
A lot. Bidders may be entitled to compensation if contracting authorities commit procurement errors. In this context, by no means every award error leads to a liability for damages. On the other hand, there are certain errors that regularly give rise to a claim for compensation — and these can involve considerable amounts. Compensation can even be claimed for lost profits and lost contributions to cover general business costs.
Cancellation of the award procedure
If the contracting authority cancels the award procedure, the previously made bidding efforts were mostly useless. The client’s obligation to indemnify depends on whether the termination was lawful — the effectiveness of the termination, on the other hand, is irrelevant. The requirements for the legality of the annulment are not low, so it is generally worth taking a second look.
Please call us directly after the cancellation. We will check with you whether you are entitled to indemnification.
The award to the wrong person
You are the first-placed bidder and your bid is excluded — due to an alleged formal error, alleged lack of suitability or allegedly inadequate costing. The contract is then awarded to the runner-up. In such a situation, contact us, even if you have never complained about the client’s actions. We will claim compensation for the lost profit and the contribution margin to the general business costs. Sounds complicated? It isn’t.
Damages as a component of receivables management
Your goal as a bidder should be not to give away claims for damages under any circumstances. You should also collect smaller receivables in a standardized manner. We show you in which cases you should expect a claim and enforce your claims in a standardized manner and in compliance with all deadlines.
Typical procedure
- Award error or annulment — report immediately
- Check basis of claim and amount of damage
- Request payment from the client
- Judicial enforcement if necessary
Frequently asked questions about procedural support
General initial orientation — no substitute for legal advice in individual cases.
Am I entitled to compensation if an order was wrongly not placed with me?
Under certain conditions, yes. Public procurement law recognizes claims for damages if the contracting authority has violated procurement regulations and the bidder has suffered damage as a result. Whether and to what extent a claim exists is always a case-by-case question. → Have it checked now
Do I need to have carried out a review procedure beforehand?
Not mandatory. Claims for damages can also exist if no application for review was made or the procedure was unsuccessful. The requirements differ depending on the basis of the claim.
Can I also claim the loss of profit?
Under certain conditions, yes. As a rule, this presupposes that you can prove that you would have been awarded the contract if it had been awarded lawfully. This is often the most contentious issue — but does not require verification as a precondition.
Note: No legal advice. All answers do not replace an individual examination by a lawyer.
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